Key facts
- LME aluminum inventories have fallen to 250,000 tons, the lowest since November 1990.
- Norsk Hydro's Alunorte alumina refinery in Brazil cut output by 50% due to natural gas supply disruptions.
- Aluminum prices reached a seven-week high in London.
- Copper futures traded above $14,000 per ton in London.
- Norsk Hydro projected a potential global aluminum deficit exceeding 900,000 tons.
London Metal Exchange aluminum inventories have fallen to their lowest level since November 1990, reaching 250,000 tons. This decline is attributed in part to a 50% output reduction at Norsk Hydro's Alunorte alumina refinery in Brazil, one of the world's largest, due to disruptions in natural gas availability. The refinery requires significant heat and steam powered by natural gas for its Bayer process.
Aluminum prices in London responded by rising to a seven-week high, trading at $3,373 per metric ton, with alumina futures also gaining in Shanghai. Norsk Hydro has warned that the global aluminum deficit could surpass 900,000 tons if trade through the Strait of Hormuz remains disrupted.
In parallel, copper futures in London have exceeded $14,000 a ton. This surge is partly driven by anticipated U.S. stockpiling ahead of President Trump's expected tariffs, which are tightening global supply for both metals. Analysts note that copper and aluminum are key beneficiaries of electrification and decarbonization trends, with copper's case supported by structural supply constraints and aluminum by lightweighting and grid expansion needs.